Here are the most valuable football clubs in the world

Real Madrid is the most valuable football team in the world and the second most valuable team in any sport - according to a new valuation by Forbes.

The magazine says the Spanish club is worth $3.65 billion, up 12 per cent from last year. Real's rivals Barcelona come third on the list of all sports teams, while Manchester United just make the top five.

Forbes says the key to Real's placing was their huge annual revenues, which came to $694 million - the highest of any sports franchise. A $1.6 billion ten-year tie-in deal with Adidas also keeps the money rolling in, as does endorsement deals with Cristiano Ronaldo.

The list varies slightly from a recent team valuation report from accounting firm KPMG, which placed Real Madrid and United joint-first and Barca third. But Real have since won a Champions League title while United did not even qualify for next season's competition, which should have been enough to push Real to the top.

Barcelona, meanwhile, benefit from a lucrative deal with Nike, said to be worth $175 million a year. Renovations to their already huge Camp Nou stadium will also increase matchday revenues, making it one of the most profitable venues in the game.